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Court of Chancery Again Rejects a One Person Special Litigation Committee

Sutherland v. Sutherland, C.A. 2399-VCL (Del. Ch. May 5, 2008)

Once again, the Court of Chancery has shot down a motion to dismiss a derivative suit based on the work of a one person SLC. This time while finding the SLC was independent, the Court felt its work was not adequate because of a lack of effort in reviewing accounting records.

The opinion is a useful collection of SLC law, particularly what not to do if you are going to use a SLC.



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